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On March 4th Indie Memphis and the Commercial Appeal will present the Red Carpet Party, an Academy Awards watch party at Rec Room. Make your predictions and see if you can beat the CA’s John Beifuss and your fellow party-goers to win prizes and raise funds for Indie Memphis!

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive the maximum value for your house?

Here are two keys to ensure that you get the highest price possible.

1. Price it a LITTLE LOW

This may seem counterintuitive, but let’s look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price but will instead have multiple buyers fighting with each other over the house.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly under priced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

A study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”

The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

It is a seller's market in real estate this year and with spring around the corner, the competition for homes is likely to get even more fierce. If you are looking to purchase a home right now, chances are you may find yourself in a bidding war. Be prepared! Here are six ways to come out on top in a bidding war:

- Get your finances in order and get as much cash as you can. It is never too soon to get pre-approved for a loan. In fact, the sooner the better. Sellers will have lots of options and will be leery of those who do not have loans set in stone. If possible, bring cash to the table. Sellers will fear appraisals coming in low and loans falling through, so be prepared to cover the difference with cash.

- Don’t hesitate! Be the first to make an offer, and make it a good one. An insulting offer will put you at the bottom of the seller’s list, so it is not a good time to low ball. Come in at or slightly below asking price so that they know you are serious about purchasing their home.

- Have an escalation clause in your offer. This is the amount of money the buyer agrees to increase the offer if there are other bids. If you offer the asking price of $400,000 on a house, but it might sell for $450,000, put in an escalation clause stating that you are willing to go as high as $460,000. But know your limit. Don’t offer more than you can handle. Also, make sure the clause states that the seller can only take the winning bid up to a level just above the competing offers. For example, if an offer comes in for $430,000, your bid would be upped to $431,000.

- Get a pre-inspection. It will cost you a few hundred dollars, but it can help you in a super-tight market. If you can make a bid that is not contingent upon inspection, sellers will look favorably on your offer versus the same offer from someone who has a contingency in their contract.
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- Show the love! If you have found the perfect house and know you love it, don’t be afraid to let the sellers know, either directly or through your Realtor. You can write a letter, send pictures of your family or even make a video describing why you love the house so much. Be specific in your praise. Sellers may appreciation the connection you feel with the house and choose you over other bidders.​

- Think with your head, not your heart. Be smart! Purchasing a home is an emotional decision, but emotions can get in the way of making wise decisions. Make sure you have done thorough research of the market: look at the most recent comparable sales, compare prices from a year ago, visit local school, have coffee at the closest café and speak to potential neighbors. Look at listings nearby. Whatever you do, don’t overpay because you get caught up in the heat of the competition. While the house may seem perfect for you, it is not the only house that will be perfect for you. So, keep a level head and make intelligent decisions.

Melissa Thompson is an experienced, professional Realtor who can help you through the negotiations involved in a bidding war. Give her a call at 901-756--8900 and start your home search today!

When you’ve lived in a home for a while, it can start to lose the charm you first saw in it. Day to day life can make it feel like a burden rather than a retreat. Especially this time of year, when you’ve taken down the holiday decorations and the days are shorter and darker. But it doesn’t have to be that way. February is the month of love and it’s a great time to remember what made you fall in love with your house to begin with. Even if your current home is not your dream house, you can still create a place you will love. Here is a list of ways to love the home you have:

- Declutter. A messy, cluttered home can make you feel overwhelmed and embarrassed to have company. Negative feelings about your home make it a place of stress instead of a place of peace and comfort. Cleaning up the clutter can seem like a huge task, but once you’ve done it, you will be glad you did!

- Show the kitchen some love. Whether you love to cook or not, chances are you spend a lot of time in the kitchen. So, it makes sense to have a kitchen you enjoy. Simple things like keeping the sink, drainer and counters clear will go a long way into creating a space you will feel good about. Place some fresh flowers on your counter or eat-in kitchen table. Find a spot for a speaker so you can listen to music while cooking. Make the time spent in the kitchen a joy and not a chore.

- Make your bedroom a retreat. Your bedroom should provide you with peace, quiet and comfort. When decorating, you might focus on the rooms that guests will see. But don’t neglect your bedroom. It is your sanctuary. Your place to escape to when you want time alone. Choose colors that give your bedroom a relaxing vibe. Splurge on luxurious bed linens. And don’t be frugal when purchasing a mattress and pillows. Sleep is so important to your overall health and having the right mattress and pillows greatly effects the quality of your sleep.

- Display favorite family memories. Like many people, you probably have hundreds, if not thousands of photos on your electronic devices. Take some time to go through them and find photos of your favorite family memories to print and frame for display. Need some ideas? Check out Pinterest for lots of unique ways to display photos in your home.

- Design a room that works for you. Do you have a room that doesn’t get used much (if at all). For example, a formal living room that nobody in the family uses. Perhaps it’s time to make use of that room in a way that works best for you and your family. Don’t get tied down to the fact that is a “formal living room”. It can be anything you want it to be. Do you love to read? Create a cozy library with a comfy chair and book shelves. Do you need home office space? Then create a home office that makes you look forward to “going to work” each day.

Even if you are not currently living in your dream house, you can make small changes that will help you love the home you’re in!